DOE regs on for-profit colleges
The DOE just released its new regs to try to rein in abuses in the for-profit ed industry (see press release below). Here's Ed Trust's take:
Weak new federal regulation is a loss for students
We — along with countless civil rights and student groups — appealed to President Obama to hold firm on tough regulations on for-profit colleges. And administration officials repeatedly promised that they'd stand up for students. But when it came down to it, the Obama administration let us down, blowing a huge opportunity.
Yesterday, the U.S. Department of Education released the final gainful employment rules, which aim to protect the students who receive federal financial aid, and the taxpayers who fund that aid, from the most toxic career-college programs.
The new rules are so watered-down and full of loopholes that they provide only the most limited protections for students and taxpayers and virtually no motivation for the for-profit sector to change.
But don't just take our word for it. Yesterday, after the regulations that will supposedly "crack down" on for-profits were released, stock prices for those companies soared.
We lost this round because the administration failed to stand up for students against the seemingly bottomless pockets of the well-connected for-profit lobbyists. We may be down, but this fight's not over. As long as these institutions continue their predatory practices, we'll push lawmakers to put student interests ahead of corporate profits.
The full regulation may be found at: http://www.ed.gov/news/press-releases/gainful-employment-regulations.
Additional information on the Department's negotiated rulemaking efforts may be found on the Web at: http://www2.ed.gov/policy/highered/reg/hearulemaking/2009/negreg-summerfall.html.